To help understand the foreclosure process you need to understand the many terms that are used frequently when talking or reading about foreclosures.
Here is the overgrownlawn.com glossary of mortgage and foreclosure terms you can expect to find used at overgrownlawn.com. These definitions have been written for anyone to understand. We have included additional links to more technical definitions.
Lender - A bank, mortgage company, or other money-holder that offers money to be used to purchase real estate. The lender expects to receive a return on their investment through interest or other fees/costs. (More)
Mortgage - a written document that defines an agreement between a lender and a borrower regarding borrowed money. (More)
Principal - The unpaid amount of a loan. (More)
Interest - Money charged by a lender to borrow money. (More)
Delinquency - The state of a relationship between a lender and a borrower when loan payments are not made on time. (More)
Collateral - The real estate or property that is used to ensure the repayment of loaned money. (More)
Lien - a legal claim against a property (collateral) that can be acquired in the event of non-payment of a loan.
Foreclosure - The legal process in which the collateral is sold to repay loaned money. (More)
Loss Mitigation - Efforts made by a lender to assist a borrower in repaying a loan in an attempt to reduce their likelihood or severity of financial loss. (More)
Short Sale - The agreement by a lender to accept less than the full amount of a mortgage to satisfy a loan. (More)
Deed in Lieu - The process of relinquishing the deed to a property to gain release from obligations defined by the mortgage. (More)
Reinstatement - the stoppage of the foreclosure process due to repayment of past due loan payments or a complete payoff of a mortgage.
Additional Links
HSBC Financial Definitions
RealtyTrac Glossary
A very detailed glossary by mtgprofessor.com
Housing and Urban Development (HUD)
Fannie Mae
Real Estate ABC
Other Articles
Buying Foreclosures -
Sheriff Sales - Buying Foreclosed Homes
Basically, the way a sheriff's sale works is that a home is foreclosed on by a lender usually due to a lack of the homeowner being able to make the necessary mortgage payments. Once the home is foreclosed upon, the home goes to Sheriff's Sale (this could happen quickly or it could take awhile to get to this point). At Sheriff's Sale most lenders have a representative go in and bid on the homes to make sure that the homes do not sell for too cheap.
Foreclosure Info -
How Do I Sell My House When I Owe More Than It's Worth?
If you are worried about selling your house when you have no equity, you are not alone. There are thousands of home owners just like you all over the country. Some of them are looking to get out of their home because of a divorce, or job transfer. Others are desperate because they were speculating that they could buy 5 condos today, and sell them in 6 months for a 50% profit. Depending on which part of the country you live in, you might be feeling different levels of pain, so here are some ways to cope with the need to sell a property when you owe more than you can sell it for.
Foreclosure Law -
New Jersey Foreclosure Law Facts
New Jersey is a Judicial Foreclosure State which means the court approves the sale and the Plaintiff gives notice to the defendant. If the response is inadequate and the required loan payment and fees are not paid, the Plaintiff goes to court for Auction Sale Approval. This is commonly known as a Sheriff's Sale or Sheriff's Auction sale.
Foreclosure Listings -
Free Government Foreclosure Listings
Whether you’re a seasonal or beginner type of realty investor, what will provide all your dealing kick offs is the so called free government foreclosure listings. All types of foreclosed properties can be found here. Even simple individuals looking for a dwelling place or big time icon dreaming to close big time deals, government foreclosure properties are the answer to all your plans.
Foreclosure News -
Mortgage Changes Will Boost Foreclosures
About 1.1 million additional home foreclosures are expected over the next six years as adjustable-rate mortgages - which made home buying more affordable to U.S. buyers in recent years - reset to higher payments, according to a study by research firm First American CoreLogic.
Foreclosure Services -
Getting The Right Foreclosure Assistance
The purchase of your home was certainly one of the biggest investments you have ever made. Now you are faced with the prospect of having to lose your house, due to circumstances beyond your control. Facing foreclosure is definitely very stressful and complicated. But with the proper assistance, it need not be such a bad experience and you may be able to keep your house and establish financial stability.
Foreclosure Tips -
Free Home Foreclosure Listing - Valuable Information?
The foreclosed home buying market is tight. And for good reason. Many people have learned that they can buy properties for a fraction of their value if they buy foreclosure or foreclosed properties. In order to help people find such properties and further their own business, many companies have started offering a free home foreclosure listing to potential buyers. But these "free" guides are not always worth the hassle.
Stopping Foreclosure -
Stop Foreclosure Now!
The number one reason homeowners facing foreclosure lose their home is because they fail to communicate with the lender. Most people in financial trouble do the same thing; stop answering the phone, stop opening the mail while trying to stick their heads in the sand. THIS IS NOT GOOD!
Buying Foreclosures -
Sheriff Sales - Buying Foreclosed Homes
Basically, the way a sheriff's sale works is that a home is foreclosed on by a lender usually due to a lack of the homeowner being able to make the necessary mortgage payments. Once the home is foreclosed upon, the home goes to Sheriff's Sale (this could happen quickly or it could take awhile to get to this point). At Sheriff's Sale most lenders have a representative go in and bid on the homes to make sure that the homes do not sell for too cheap.
Foreclosure Info -
How Do I Sell My House When I Owe More Than It's Worth?
If you are worried about selling your house when you have no equity, you are not alone. There are thousands of home owners just like you all over the country. Some of them are looking to get out of their home because of a divorce, or job transfer. Others are desperate because they were speculating that they could buy 5 condos today, and sell them in 6 months for a 50% profit. Depending on which part of the country you live in, you might be feeling different levels of pain, so here are some ways to cope with the need to sell a property when you owe more than you can sell it for.
Foreclosure Law -
New Jersey Foreclosure Law Facts
New Jersey is a Judicial Foreclosure State which means the court approves the sale and the Plaintiff gives notice to the defendant. If the response is inadequate and the required loan payment and fees are not paid, the Plaintiff goes to court for Auction Sale Approval. This is commonly known as a Sheriff's Sale or Sheriff's Auction sale.
Foreclosure Listings -
Free Government Foreclosure Listings
Whether you’re a seasonal or beginner type of realty investor, what will provide all your dealing kick offs is the so called free government foreclosure listings. All types of foreclosed properties can be found here. Even simple individuals looking for a dwelling place or big time icon dreaming to close big time deals, government foreclosure properties are the answer to all your plans.
Foreclosure News -
Mortgage Changes Will Boost Foreclosures
About 1.1 million additional home foreclosures are expected over the next six years as adjustable-rate mortgages - which made home buying more affordable to U.S. buyers in recent years - reset to higher payments, according to a study by research firm First American CoreLogic.
Foreclosure Services -
Getting The Right Foreclosure Assistance
The purchase of your home was certainly one of the biggest investments you have ever made. Now you are faced with the prospect of having to lose your house, due to circumstances beyond your control. Facing foreclosure is definitely very stressful and complicated. But with the proper assistance, it need not be such a bad experience and you may be able to keep your house and establish financial stability.
Foreclosure Tips -
Free Home Foreclosure Listing - Valuable Information?
The foreclosed home buying market is tight. And for good reason. Many people have learned that they can buy properties for a fraction of their value if they buy foreclosure or foreclosed properties. In order to help people find such properties and further their own business, many companies have started offering a free home foreclosure listing to potential buyers. But these "free" guides are not always worth the hassle.
Stopping Foreclosure -
Stop Foreclosure Now!
The number one reason homeowners facing foreclosure lose their home is because they fail to communicate with the lender. Most people in financial trouble do the same thing; stop answering the phone, stop opening the mail while trying to stick their heads in the sand. THIS IS NOT GOOD!
